Simple payroll and accounting for your small business, all in one place

Pay yourself and your employees with HMRC-recognised online payroll software. Streamline payroll and UK payroll tax filing with cloud software that automatically calculates employee pay, leave and pension deductions.

HMRC requirements sorted

Simplify HMRC compliance and reporting with cloud payroll software.

Automated payroll calculations

Let Xero calculate payroll tax, pension contributions, and employee leave.

Employee self-service

Grant employees access to Xero Me to view payslips, request leave, and submit timesheets online.

Fast pension re-enrolment

Automated pension re-enrolment reduces admin and saves time.

See how online payroll streamlines tasks

HMRC requirements sorted

Xero’s payroll software for small business is HMRC-recognised and simplifies compliance with HMRC payroll reporting requirements.

RTI (real-time information) submissions are automated
Xero submits your payroll details to HMRC after each pay run, helping make sure you file on time
Any adjustments are a breeze

In the payroll software, the names of selected employees and the amount they are to be paid are ticked.

Automated payroll calculations

Pay employees in just a few clicks with Xero’s payroll system. Your Xero accounts are automatically updated with payroll data so your payroll records and reports stay up to date.

Automatic calculation of tax, pensions and leave
Flexible pay calendars and pay rates
Payslips are instantly available to employees in the Xero Me employee portal, or can be shared securely via email

Employee pay details including type, salary, earning YTD and next payday display in Xero’s UK payroll software.

Employee self-service

Reduce admin and save time by giving your employees self-service access to Xero Me so they can manage their own work-related admin in app, on the go, or from a web browser.

Your staff can access their own payslips
Employees can view leave balances and submit leave requests or timesheets on the go
Authorised employees can review and approve leave requests and timesheets

Employees using the Xero self-service payroll app, Xero Me.

Fast pension re-enrolment

Using Xero payroll software in your small business helps make sure you never miss your UK pension re-enrolment obligations.

Receive cyclical reminders to keep you up to date
Automatically assess and enrol employees
Secure integration with pension providers

Learn more about automating workplace pensions

An employee checks their phone to see their latest payslip.

Make CIS scheme deductions and submit returns

Use Xero accounting software to manage CIS scheme deductions, submit returns, and simplify compliance.

More about CIS scheme deductions

Make CIS scheme deductions and submit returns

More about payroll software for your UK small business

: Payroll in Xero helps streamline, automate and manage a whole range of payroll-related tasks. Browse a comprehensive list of all the things Xero cloud payroll system can do to make running your UK small business easier.
See features and functionality of Xero UK payroll software
Payroll in Xero helps streamline, automate and manage a whole range of payroll-related tasks. Browse a comprehensive list of all the things Xero cloud payroll system can do to make running your UK small business easier.
See features and functionality of Xero UK payroll software
: When you enable automatic enrolment and re-enrolment in Xero, eligible employees are enrolled in your workplace pension, and their contributions are automatically calculated against their earnings. Xero enables you to connect directly to Nest and to the People’s Pension to submit your contributions electronically, or download a file to submit to another provider.
Learn more about automating workplace pensions
When you enable automatic enrolment and re-enrolment in Xero, eligible employees are enrolled in your workplace pension, and their contributions are automatically calculated against their earnings. Xero enables you to connect directly to Nest and to the People’s Pension to submit your contributions electronically, or download a file to submit to another provider.
Learn more about automating workplace pensions
: Employee leave balances are automatically recalculated and adjusted when a leave request is submitted and approved. Xero payroll software for small businesses comes with all the standard types of leave – plus you can set up custom leave types. Manage employee leave including sick leave, maternity, paternity, shared, adoption and bereavement leave with ease when you use Xero payroll software.
See how to enter leave entitlements
Employee leave balances are automatically recalculated and adjusted when a leave request is submitted and approved. Xero payroll software for small businesses comes with all the standard types of leave – plus you can set up custom leave types. Manage employee leave including sick leave, maternity, paternity, shared, adoption and bereavement leave with ease when you use Xero payroll software.
See how to enter leave entitlements
: Once employee hours are entered into timesheets, earnings are automatically calculated. The time that’s entered on project tasks also flows into payroll timesheets.
See how to add an employee timesheet
Once employee hours are entered into timesheets, earnings are automatically calculated. The time that’s entered on project tasks also flows into payroll timesheets.
See how to add an employee timesheet
: Give self-service access to your employees to view payslips, request leave, or submit timesheets in Xero Me.
Learn more about Xero Me
Give self-service access to your employees to view payslips, request leave, or submit timesheets in Xero Me.
Learn more about Xero Me
: View a wide range of payroll reports to get valuable data and information on payroll activity, transactions, remuneration and pension contributions.
See the full list of Xero's payroll reports
View a wide range of payroll reports to get valuable data and information on payroll activity, transactions, remuneration and pension contributions.
See the full list of Xero's payroll reports
: Payroll is included for 1 person in Grow plan, for up to 5 people in Comprehensive plan, and for up to 10 people in Ultimate plan. On the Ultimate plan only, pay £1 per additional person, up to a maximum 200 people. Payroll is not included in Ignite plan.
See the Xero UK pricing plans
Payroll is included for 1 person in Grow plan, for up to 5 people in Comprehensive plan, and for up to 10 people in Ultimate plan. On the Ultimate plan only, pay £1 per additional person, up to a maximum 200 people. Payroll is not included in Ignite plan.
See the Xero UK pricing plans